At least two manufacturers will likely lay off workers after new engine emissions regulations take effect Oct. 1.

According to published reports, Detroit Diesel could lay off as many as 700 workers for an indefinite amount of time by the second week of October because of falling orders for Series 60 engines. That’s about 45 percent of the 1,550 workers making truck engines at the DaimlerChrysler subsidiary. Engine production is expected to drop to 50 to 60 engines a day in October from about 250 a day currently, according to Bloomberg.
Navistar has also warned of the possibility of job cuts. According to London’s Financial Times, Friday the company told workers at its main heavy truck manufacturing plant in Chatham, Ontario, that it might have to cut 400 jobs starting in November because its advance order book is not filled.
Under Canadian law, companies must give 12 weeks notice of the possibility of layoffs, and says it hopes it will not have to cut jobs.
Orders have been brisk this year as many larger fleets pre-buy trucks before the new regulations take effect, fearing increased costs and reduced fuel economy and reliability in the new engines. Fleets say they have not had enough time to field-test the new engines.
A Navistar officials says it doesn’t know how much of this year’s increased truck sales has been due to pre-buy and how much to economic turnaround. In fact, next week it plans to increase production at its Chatham plant from 39 to 65 trucks a day to meet the current demand, according to the Times.
Paccar said last month that fourth-quarter sales could be “unfavorably impacted as a result of the current accelerated buying and slow growth of general freight.”